Bernanke Says Regulators Should Stop Future Bubbles Before They Happen
Article tools
sponsored by:
sponsored by:
Ben Bernanke in remarks
release this morning by the Federal Reserves: “For a time, rising house
prices became a self-fulfilling prophecy, but ultimately, further appreciation
could not be sustained and house prices collapsed. This description suggests
that regulatory and supervisory policies, rather than monetary policies, would
have been more effective means of addressing the run-up in house prices.” In
short, he concludes: Monetary policy isn’t to blame for the real estate bubble;
rather blame all those crazy “exotic” mortgages for the speculative excess in
real estate. For an opinion on this, go to VonAldo.com.
